Yahoo And AOL Together?

The Times has reported that Yahoo might be reconsidering the idea of a merger with AOL.   Yahoo, of course, yesterday famously rejected Microsoft’s $44.6 billion takeover offer, but in the wake of that,it’s looking at its options, among them a merger with AOL, which the company had previously been discussed. However, it came to nothing when no price could be decided. Among the otherpossibilities is Yahoo selling its ad business to Google.   With Google now the dominant search engine, and Yahoo having gone through eight quarters ofdeclining profits in a row, it’s obvious something has to be done. At the same time, the company isn’t about to sell itself cheaply. In order to meet the demands of the Yahoo board for avaluation of $40 per share, Microsoft would have to tack some $12 billion onto its offer.